New York Metropolitan Transportation Council, Brown Bag Seminar, April Intermodal Transportation and Commodity Chains: New York and the Global, Regional and Local Nexus Jean-Paul Rodrigue Associate Professor, Dept. of Economics & Geography, Hofstra University, New York, USA Paper available at:

New York as a Nexus: Commodity Chains and Transportation Commodity Chains Transportation Global Regional Local Production Distribution Consumption Gateways Corridors Terminals Integrated Transport Systems

UPS Willow Springs Distribution Center, Chicago The Global Nexus: Commodity Chains and Global Production Networks Global Production Networks Container Ports as Gateways Integrated Transport Systems 

Spaces, Networks and Flows in a Global Economy ■Globalization; a clustered and spatially diffused process In terms of production and consumption. Distribution is reconciling spatially diverse demands for raw materials, parts and finished goods. ■The backbone of globalization Networks are established to support distribution. Nodes are regulating the flows within networks. As international trade increases, nodes have become strategic locations.

Commodity Chains and Added Value Commodity chain Added value Low High Manufacturing R&D Globalization Distribution Design Branding Marketing Sales / Service Concept Logistics

Disconnection of Global Production and Distribution Manufacturing Base Core Base Distribution Marketing / Retail R&D

The Emergence of Global Production Networks ■The Logistical Nexus Fast growth of international trade with the full realization of comparative advantages. Geographical and functional integration of production, distribution and consumption. Commodity / Supply Chains. Transportation integrated in the production / retailing process. Global Production Networks (GPN). Logistical poles where value added activities are performed. Entirely new nodal locations. Commodity Chain Flows Market Transport Chain Parts and raw materials Manufacturing and assembly Distribution Market Stage Bulk shipping Unit shipping High volumes Low frequency Low volumes High frequency LTL shipping Average volumes High frequency Network GPN

Traffic at the 50 Largest Container Ports, 2004

Integrated Transport Systems: From Fragmentation to Coordination FactorCauseConsequence TechnologyContainerization & ITModal and intermodal innovations; Tracking shipments and managing fleets Capital investmentsReturns on investments Highs costs and long amortization; Improve utilization to lessen capital costs Alliances and M & ADeregulationEasier contractual agreements; joint ownership Commodity chainsGlobalizationCoordination of transportation and production (integrated demand) NetworksConsolidation and interconnection Multiplying effect

Major US Modal Gateways, 2004

The Three Main Gateways of North America Gateway System GatewaysTotal share (%) Imports / Exports ($ billions) 2004 Southern California Port of Los Angeles, Port of Long Beach, Los Angeles International Airport, Otay Mesa (Port of Entry) 18.3%$255.9$77.8 New York / New Jersey JFK International Airport, Port of New York / New Jersey 13.1%$163.0$75.8 Detroit Detroit (Port of Entry), Huron (Port of Entry) 9.8%$97.9$81.8

Translisft crane, NS Rutherford yard, PA The Regional Nexus: Freight Distribution, Gateways and Corridors Intermodalism and Transmodalism Corridors 

Intermodal and Transmodal Operations ROAD RAIL MARITIME Intermodal Terminal Thruport Ship-to-ship DCs / CD Intermodal OperationsTransmodal Operations On-dock rail Transloading Port container yard

Intermodal Transport Chain Composition Transfer Interchange Decomposition Local / Regional Distribution National / International Distribution Transport Terminal ‘First mile’ ‘Last mile’

Main North American Trade Corridors and Metropolitan Freight Centers

Level of Congestion of the Interstate Highway System

APL “Australia” entering San Francisco Harbor The Local Nexus: Terminals Terminalization of Ports Port Regionalization 

Commodity Chain The Value Capture Process along Commodity Chains Port Holding Port Authority Maritime Services Inland Services Port Services Horizontal IntegrationVertical Integration Maritime Shipping Port Terminal Operations Inland Modes and Terminals Distribution Centers

Logistics: Soft Pressures on Hard Assets Locational Infrastructural Transport Logistical Shipper Customer Valorization Demand Pull

Port Holdings as Elements of the Maritime / Land Interface ■Horizontal integration using fixed assets More than 40% of global containerized traffic (2006). Gain a foothold in a wide variety of markets (strategic positioning). Financial assets. Managerial expertise. Gateway access. Leverage. Traffic capture. Global perspective.

The Spatial Development of a Port System: Towards Regionalization Phase 1: Scattered ports Phase 2: Penetration and hinterland capture Phase 3: Interconnection & concentration Phase 4: Centralization Phase 5: Decentralization and insertion of ‘offshore’ hub Phase 6: Regionalization Load centerInterior centre Regional load centre network Freight corridor LAND SEA Deepsea liner services Shortsea/feeder services

Cargo Handled by the Port of New York, (metric tons)

Annual Traffic at Some NY / NJ Crossings, 2005 (millions of vehicles)

Truck Freight Corridors New Jersey Long Island New York Brooklyn Queens Staten Island Bronx Manhattan GWB TNB WSB TZB VZB TBB LT HT OCB GTB BYB Connecticut JFK LGA EWR About 70 million truck crossings per year Major Crossing ,000 of Trucks per Day (2000) QMT BBT 8.4

Rail Freight Corridors and Port Facilities New Jersey Long Island New York Brooklyn Queens Staten Island Bronx Manhattan Port Terminal Intermodal Terminal NJ Distribution Cluster

45 Navigation Channel Control Depth (feet) Intermodal Terminal Container Port (proposed) Major Highway Proposed rail tunnel Ambrose Channel Main Ship Channel Raritan Bay Channel Arthur Kill Channel Kill Van Kull Channel Newark Bay Channel Upper Bay Channel Hudson River East River 50 The Narrows Brooklyn Staten Island New Jersey N 2 1 Howland Hook Red Hook South Brooklyn 3 1- Port Newark 2- Port Elizabeth 3- Global Marine Albers Equal-Area Conic Projection Intermodal Facilities and Navigation Channels of the Port of New York, 2007 Daily Truck Movements (one way), 2001

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